Honestly, maybe people should pay taxes on that. Remember, it only applies to the gain in value, so loans up to the original purchase price would not be taxed.

Honestly, maybe people should pay taxes on that. Remember, it only applies to the gain in value, so loans up to the original purchase price would not be taxed. The tax is assessed based on the maximum collateralization minus the purchase price and minus any value previously taxed as a capital gain, as I understand it. In a practical sense, they have gained spending power they wouldn't have otherwise.